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The loan guarantee is a financial tool that provides
a guarantee from OHFA to a lending institution for the development
of housing for low- to moderate-income households, if a default
situation were to occur. The guarantee should allow the borrower
to obtain a larger loan, receive a lower interest rate, or develop
a project that would not happen “but for” the OHFA loan
guarantee. It is the desire of OHFA to assist in the development
of affordable housing in areas that are traditionally difficult
to serve.
In times of dire emergency situations, such as national
disasters caused by tornado, hurricane and flood, etc., the Loan
Guarantee Program shall be available for post-FEMA rebuilding programs.
In being responsive to these situations, OHFA will deviate from
these guidelines as needed.
Prospective borrowers can apply for this program by submitting an
Affordable Housing Funding Application (AHFA) to OHFA. The AHFA
provides a single point of entry for developers seeking various
resources for low- and moderate-income housing development from
the Agency.
Follow
this link to download the Housing Development Loan Program guidelines
and application. The AHFA is also available on disk for Excel
upon request by contacting the Office of Planning, Preservation
and Development at (614) 466-0400 or 1-800-848-1300, ext. 6-0400.
Eligible applicants can be sponsors (as defined in Appendix B of
the Housing Development Loan Program guidelines), and private developers
(any individual, firm, corporation or entity, other than a nonprofit
corporation, limited profit entity, or public corporation).
Eligible uses of this loan are limited to the guarantee
of a loan for the development of housing for low- to moderate-income
persons. This can include new construction and/or rehabilitation.
The loan must be awarded by an established FDIC-insured financial
lending institution that has an active and continued presence in
the State of Ohio.
The maximum amount of an OHFA loan guarantee will
not exceed 80% of the loan that is to be guaranteed, or $1,000,000,
whichever is smaller.
This
summary is an excerpt from the Housing Development Loan Program
guidelines. The complete guidelines and application are available
for downloading. If you need further information, contact the Office
of Planning, Preservation and Development at (614) 466-0400.
The
Housing Development Loan Program guidelines may be subject to change
in the future pending developments in state legislative requirements
and/or Agency policy. OHFA reserves the right to make changes or
amendments to these guidelines at any time and to limit loan funding
based on funding availability.
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